Green Driver State Incentives in Louisiana

For a state famous for bayous and accessible coastline, Louisiana understands the paramount importance of a clean environment. To help entice its drivers to lower their emissions and help staunch the processes of global warming, LA offers money- and time-saving incentives to those with fuel-efficient cars.

Please note that Louisiana's eco-friendly incentives and related laws might evolve. Two additional resources to consult include your local Louisiana Office of Motor Vehicles and the Alternative Fuels Data Center. Of course, all drivers—regardless of whether they drive an electric car, hybrid, or alternative fuel vehicle—must abide by LA traffic lawswhen traveling our public roads.

Louisiana Emission Testing Exemptions

The Office of Motor Vehicles exempts new vehicles from computer diagnostic testing for the first 2 years*. However, not all Louisiana-registered vehicles require an emissions inspection as a requirement of first-time LA car registration or registration renewal.

In fact, the emissions test requirement only applies to gasoline-powered passenger cars, light- and heavy-duty trucks (with a gross vehicle weight rating of 10,000 lbs or less) registered in the Baton Rouge 5 parish ozone non-attainment area. This includes the Louisiana parishes of:

Ascension.

East Baton Rouge.

Iberville.

Livingston.

West Baton Rouge.

*Louisiana calculates this period of 2 years starting from the vehicle's model year. Please note that exempt vehicles must still undergo the visual anti-tampering check and gas cap integrity test required of all Louisiana-registered vehicles. For more on emissions inspection exemptions, requirements, and safety inspection specifics consult our page titled LA Smog and Emissions Checks or the driver resources of the Louisiana Department of Environmental Quality (DEQ). You can also call the DEQ at (225) 219-3530.

To find an inspection station in your parish, jump to the locator widget at the bottom of the page.

Discounts you are eligible for will vary by insurance carrier and your circumstances. Drivers of hybrid or electric cars may be able to get a 10% insurance discount on their policy. If you also keep the mileage low you could qualify for an even bigger discount.

Louisiana Tax Incentives for Green Vehicles

Owning an alternative energy vehicle might save you money thanks to a few local and federal tax credits. Read on for more details. Then, if you have individual tax questions on taking advantage of these incentives, consult a tax professional, the IRS Taxpayer Assistance Center, or Louisiana's Department of Revenue.

Alternative Fuel Vehicle Conversion and Fueling Income Tax Credit

Louisiana taxpayers with an alternative fuel vehicle might be eligible for a significant tax break. As long as your vehicle is a Louisiana-registered and dedicated AFV, you might earn an income tax credit of:

30% of what you spend on alternative fueling equipment.

10% of your AFV purchase cost (not to exceed $2,500).

Another factor that determines whether you can take the AFV tax credit is the year in which you incurred such costs. That's because the State's definition of alternative fuels shifted slightly in 2014.

Through 2013, the State definition of alternative fuels (for the purpose of this incentive) includes:

Compressed natural gas (CNG).

Liquefied natural gas (LNG).

Liquefied petroleum gas (propane).

Biofuel and biodiesel.

Methanol.

Ethanol.

Electricity.

Or, if your vehicle runs on some other fuel that meets or exceeds federal clean air standards, it also qualifies.

Purchases made after January 1, 2014 fall under a shorter list that only includes:

Green Jobs Tax Credit

Certain qualified capital infrastructure projects (such as those in "green job industries") in Louisiana might be eligible for corporate or income tax credits when the projects are directly related to (but not limited to) biofuels and advanced drivetrain vehicles. The tax credit is based on investment costs and is anywhere from 7% to 18% of project costs up to $1,00,000,000 per green state-certified project.

Payroll for employees (who must be Louisiana residents) might be eligible for an extra 7.2% credit.